A recent report by the Washington Policy Center (WPC) highlights rising concerns about Washington State’s business and tax climate. The nonprofit think tank released a digital dashboard as part of its ongoing “Report Card for Washington’s Future” project, using data from sources including the Tax Foundation and the U.S. Bureau of Labor Statistics.
According to the report, Washington dropped from sixth to 45th in state tax competitiveness rankings over the past decade. It also has the eighth-highest business failure rate nationwide over the last ten years. Business leaders, including representatives from Amazon, Microsoft, Costco, and others, recently urged state lawmakers to avoid additional business tax increases.
While opinions differ on policy direction, business advocates say recent tax and regulatory changes are creating challenges for employers, particularly small businesses. Concerns include higher business and occupation (B&O) taxes, a new rent cap law, and expanded unemployment benefits for striking workers.
Leaders from both WPC and the Seattle Metropolitan Chamber of Commerce say these changes may affect job growth and consumer prices. They warn that without greater tax stability and predictability, Washington could face long-term economic impacts affecting businesses and residents alike.
